Daily Brief – UK Interest Rates

UK Interest Rates

Unusually there were almost as many pundits calling for the Bank of England to hold off cutting interest rates yesterday as there were for an immediate reduction. In the event the 25bp cut from 5.25 to 5.00% had initially been discounted by the FX market but that did not prevent a further dip in GBP later in the day to well below recent lows. As for further cuts the probability is for one more this year with an objective of 3.5% in the next 3 years.

GBP/USD 1.2730.

Olympian Spirit

For countries such as the UK and Norway, the glory of taking home medals knowing that they have competed at the very highest levels and won, is quite enough. Other countries award cash bonuses: for example the USA gives athletes $38,000 for Gold, $23,000 for Silver and $15,000 for Bronze. However this is dwarfed by some Asian countries: Hong Kong $768,000. $384,000 and $192,000. Singapore $745,000, $373,000 and $186,000. Indonesia on the other hand bestowed their Badminton Gold Medallists with 5 cows, a meatball restaurant and a new house. 

EUR/USD 1.0785.

Booking.com

Having recently been fined what seemed a lot by Hungary for unfair booking practices, Booking.com was yesterday punished by the Spanish regulator to the tune of EUR 413 million. Booking.com has had to date between 70-90% of the Spanish accommodation booking market. following that fine and the findings what that means is that the Spanish market will now be open to more search and booking platforms which should be good for users although not so good for booking.com.

EUR/GBP 0.8472.

Paris 

It is too early for Paris to sing Je ne regrette rien as the financial outcome of the Olympics is unclear. What is known is that the budget for the games which is mostly privately funded was EUR 4.38 billion. EUR 400 million came from the Olympic Committee while the rest was raised privately. Two weeks before the games began there was an admitted overspend of EUR 200 million, so it is safe to say that the post Olympic effect will start off in deficit . This is the third time that Paris has hosted the Games so it knows what it means to monetize the infrastructure that has been constructed for the Olympics.

USD/JPY 149.64.

Lady in Red

This day in 1986 British-Irish crooner and Marlborough College Wiltshire educated Chris de Burgh  was enjoying the beginning of a 3 week run at Number One with this number. Chiefly remembered for both this song and an affair with his 19 year old childrens’ nanny in 1994, Chris de Burgh managed to repair relations with his wife Diane and is still playing the music now aged 75.

I’ve never seen you looking so lovely as you did tonight
I’ve never seen you shine so bright, mhm-hmm
I’ve never seen so many men ask you if you wanted to dance
They’re looking for a little romance, given half a chance
And I have never seen that dress you’re wearing
Or the highlights in your hair that catch your eyes
I have been blind

The lady in red
Is dancing with me, cheek to cheek
There’s nobody here, it’s just you and me
It’s where I want to be
But I hardly know this beauty by my side
I’ll never forget the way you look tonight

I’ve never seen you looking so gorgeous as you did tonight
I’ve never seen you shine so bright, you were amazing
I’ve never seen so many people want to be there by your side
And when you turned to me and smiled, you took my breath away
I have never had such a feeling
Such a feeling of complete and utter love, as I do tonight

Lady in red
Is dancing with me, cheek to cheek
There’s nobody here, it’s just you and me
It’s where I want to be
But I hardly know this beauty by my side
I’ll never forget the way you look tonight

Have a Great Weekend!

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